Arrangement fee<\/h3>
This is the fee a lender will charge to arrange your mortgage.<\/p>
Some mortgages have no arrangement fee attached, while others will cost you up to \u00a31,500.<\/p>
In fact, it’s a common strategy for lenders to advertise an eye-catching low interest rate and make up the costs with a huge arrangement fee.<\/p>
It’s sometimes possible to add an arrangement fee onto your mortgage, but this isn’t recommended because you’ll end up paying interest on it for the entirety of your mortgage term.<\/p>
Booking fee<\/h3>
This is similar to an arrangement fee, except you’ll pay it upfront after a mortgage has been accepted. You won’t be refunded if you pull out of the sale.<\/p>
Some lenders don’t include a booking fee, while others charge upwards of \u00a3100.<\/p>
Valuation fee<\/h3>
When you apply for a mortgage on a property, your lender will arrange a professional valuation of it to ensure it provides adequate security for your loan. The valuation fee covers the cost of this process and will usually set you back between \u00a3100 and \u00a3200.<\/p>
If the valuation determines the property isn’t worth as much as what you’re borrowing, your lender will lower the amount of money it’s willing to lend you.<\/p>
Then, you’ll either have to lower your offer or find another way to raise the remaining funds.<\/p>
Telegraphic transfer fee<\/h3>
The cost for the mortgage lender to transfer money to the property’s seller. Typically between \u00a330 and \u00a360.<\/p>
Mortgage account fee<\/h3>
The charge for managing your mortgage account. This is a one-off fee, which you may be able to defer until the end of your mortgage.<\/p>
In this case, it’s often called an exit fee, closure fee or redemption fee. It’s rare you’ll have to pay an account fee and <\/em>an exit fee.<\/p> Some lenders don’t charge this fee at all. Others charge up to \u00a3300.<\/p> Some mortgage brokers will charge a fee for finding you the best mortgage product. They might charge you a fixed rate, typically between \u00a3400 and \u00a3700. Some will charge a percentage of the mortgage they arranged, while others might charge a combination of both.<\/p> Take note of when you’ll be charged. Some brokers charge before completion, while others only charge if you complete the mortgage.<\/p> Our guide on mortgage brokers<\/a> explains more about what they do and whether you should use one.<\/p> This is a one-off fee that lenders may choose to charge on high loan-to-value mortgages.<\/p> For example, it may be imposed on homeowners who borrow more than 80% of a property’s value. It’s typically charged as a percentage of the extra amount borrowed.<\/p> Take note of whether you’ll pay this and how much it will cost you, as this charge can easily be enough to make your mortgage rate uncompetitive.<\/p> As a condition of your mortgage, you’ll have to arrange buildings insurance when you buy a property. This covers the cost of damage that occurs to your property. You may also want to invest in contents insurance, which covers the cost of damage to belongings within the property.<\/p>Mortgage broker fee<\/h3>
Higher lending charge<\/h3>
Home insurance<\/h3>